Applying "strict" cancellation rules also for hosts (not only for guests)

[Martin1244]

Airbnb should offer a "strict" cancellation rule also for hosts, with a penalty that is high enough to prevent hosts from cancelling just because they want to get a better price.

Background - I recently faced the following situation:

- I booked & paid a nice flat in a city where an important congress was scheduled at the same time.

- Afterwards I booked a flight - so everything was set.

- Prices for flats were raising continuously, up to ten times the regular price.

  E.g. flats for 150 Euros per night were now advertised at 1,500 Euros per night - unbelievable!

- Suddenly I got a mail from the host: "Sorry, we needed to cancel your reservation. We already sent your money back."

- And the day after I found the same flat now advertised on a different web portal for 3 times the price I had paid!

- Now I had a flight - but no more affordable accomodations were available... 😞

- I looked at the rules for hosts - and obviously the penalty for hosts on Airbnb is way too low to prevent such unfriendly actions!

=> Therefore I suggest to offer "strict" cancellation policies for hosts as an option during the booking process.

E.g. the price for a flat could be 150 Euros (host can cancel "flexibly") or 200 Euros (host can not cancel without being charged 600 Euros penalty = "strict").

This would ensure "fair play" for both guests & hosts.

Without such feature I currently do not recommend to book flats on Airbnb during peak travel times...

[Ricardo85]

@Martin1244 

Please, read this.

Ricardo

[Sarah977]

@Martin1244  What rules for hosts did you look at? If a host cancels a reservation, this is what penalties the host receives:

The dates are blocked by Airbnb so no one else can book them. (of course if a host uses multiple sites to book guests, as yours did, this doesn't affect them adversely)

The host receives a $100 fine.

The host has "Host cancelled this reservation XX days before check-in" plastered on their review page, which makes prospective guests wary of booking with them.

If the host has Superhost status, they lose that status for even one cancellation.

You can report this host to Airbnb- let them know that your reservation was cancelled, yet the listing appeared open for the same dates on a different site at 3 times the price.

[Martin1244]

Thanks to both of you for sharing link & details.

And YES, these are the rules I looked at.

Obviously for my host the chance to earn 2000 Euros (instead of 700 Euros) was worth the short-term penalty.

Having enough positive reviews the host did not care much about being a "superhost" or a "host with many positive reviews".

So at peak times markets can get crazy.

That is why I would be happy to pay a premium  for a "strict host cancellation rule" - and sleep well afterwards without having to worry about a sudden cancellation by the host...

And of course I escalated the issue - but I was just informed about which penalty the host will face, and that was it...I could not even leave a negative review (which would provide more insight to potential guests than the automated review does).

[Ale113]

If me myself I had to revenge to every guest that cancelled me the week before... 

[Martin1244]

But you can decide to go for "strict" cancellation, right?

As guest I do not have this choice... 😞

[Sarah977]

@Martin1244  As a guest you have a choice whether to book something that has a strict cancellation policy. No one forces you to book that. There are plenty of places that have moderate and flexible policies.

[Martin1244]

The HOST can cancel ANY time because there is no cancellation policy for hosts.

As guest I have no choice to prevent the host from cancelling. That is my point.

But the host can apply a penalty if the guest cancels ("strict policy").

And this is not fair!

This can put you in real trouble if you have booked a major trip during peak season and suddenly the host cancels!

And he can do so ANY time!

[Sarah977 · Accepted solution]

@Martin1244  But guests also cancel anytime. They'll make a booking for a month, 3 months ahead, and then cancel a day or two before check-in. Then they tell Airbnb that they were sick, or some other excuse, and Airbnb takes the guest side and refunds them fully. This happens all the time.

So the host has had that month blocked on their calendar for 3 months, and 2 days before the guest's check-in, they cancel. There is no way the host can fill those dates on such short notice and the host gets nothing. Zero, zip.

Martin, this is not hosts against guests. This is Airbnb's terrible customer service and insane policies. And they affect hosts as much as they affect guests, believe me.

[Martin1244]

Oh, you are right - there is actually no "strict" policy for guests either:

"Cancellation policies may be superseded by the Guest Refund Policy, extenuating circumstances, or cancellations by Airbnb for any other reason permitted under the Terms of Service. Please review these exceptions."

-> So I fully agree: Airbnb provides unfair rules to BOTH the host and the guest!

-> Then I need to change my proposal from "apply strict policies to hosts" to "create fair rules for both guests + hosts".

Apologies to all hosts!

I did not expect Airbnb to have such terrible rules in place!

-> But which alternative web portal is offering fairer rules?

[Alex-and-Vaughan0]

> That is why I would be happy to pay a premium  for a "strict host cancellation rule"...

That's called "travel insurance". It exists already.

[Ute42]

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@Martin1244 

I agree with You. Hosts should face the same financial penalties as guests based on their flexible, moderate or strict cancellation policy.  In Your case that would be a 350 USD fine if Your host has opted for strict cancellation.

But if prices go up from 700 to 2000 USD I'm afraid even that wouldn't prevent Your host from cancelling.

There never is a 100% security in life.

[Martin1244]

But your suggestion of 350 USD fine leads me to this idea:

Airbnb could keep 50 USD for admin efforts and the remaining 300 USD could be paid to the guest as compensation.

That would compensate the guest's additional efforts to find a new accomodation and/or re-arrange the flight.

And the host could still earn more money.

I would not call this a "win-win situation" but at least a fairer deal than it is right now.

[Elena87]

@Martin1244 

This kind of penalty is potentially wide open to fraud. Corporate culture means that there is barely any checks or verifications made for new listings.

Airbnb cannot fine hosts directly this way, they can only take it out of the next payment, if any.

Paying out before collecting won't end well.

[Martin1244]

I do not see this fraud risk because you can get insurances for situations with far more risk (e.g. driving a car).

Just look at travel insurances that pay the trip if you get ill or your house is on fire or whatever.

Looking at the high service fee that Airbnb is charging for basically no other service than managing a web portal such insurance against host-caused cancellations should be already included in the price.

There is enough cash in the company to easily pay the guest until the host can be fined.

And just like guest have to provide a credit card to book -> the hosts could also be obliged to provide a credit card, to prevent fraud and verify the host / location is existing.

So there are multiple easy ways to ensure both guests & hosts can travel with confidence.